The National Bank’s intervention hit record level in one month. The bank traded three times at the foreign exchange auction in October and sold a total of $173.4 million.
Financier Giga Bedineishvili says it is questionable to sell such a sum of reserves before the elections. According to him, the bank’s decisions are politically motivated.
"The sale of reserves before the elections is very suspicious. This once again indicates that the National Bank is not independent. The National Bank must either be truly independent, or it would be better if it did not exist at all. We cannot have anything more catastrophic than a politicized National Bank. The National Bank’s strange moves towards Partskhaladze, the release of reserves before the elections, once again further confirms that the National Bank is politicized and serves the "Georgian Dream." - says Giga Bedineishvili.
Last time the National Bank made an intervention on October 23 and sold $60 million at the foreign exchange auction. The bank states that the decision to hold the foreign exchange auction was made in order to prevent excessive influence of non-fundamental factors and the excitement traditionally characteristic of the pre-election period in the currency market. "This, in turn, will reduce the negative impact on prices and financial stability and will boost the stabilization on the foreign exchange market," the National Bank states.
